The main reason Microsoft is imposing their rules is because they really want to get past disc based gaming. Should we still be buying discs in 2013?

Depends on if you actually want to own your games, or if you want to have some corporation dictating when and how you can play them, and possibly taking away access at some point in the future. A lot of my friends are still playing their Atari 2600/NES/C64/etc games even today. I'm not quite that hardcore... I use emulators